The Malaysian Insight

NAJIB Razak’s SRC International Sdn Bhd corruption trial involving RM42 million has concluded today, but it is not the end of the former prime minister’s legal woes.

The case involving RM42 million in SRC International funds is merely the first of six trials which Najib had been facing.

The other trials are:

1Malaysia Development Bhd (1MDB) – RM2.28 billion

In the 1MDB trial, Najib was slapped with 25 charges on September 20, 2018.

– Four counts of abuse of power under section 23 of the Malaysian Anti-Corruption (MACC) Act 2009 for offences allegedly committed between February 24, 2011 and December 19, 2014.

– Twenty-one charges of money laundering under section 4(1)(a) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). The 21 charges involve nine counts of receiving RM2.08 billion, seven counts of transferring RM2.19 billion and five counts of using RM22.649 million.

This trial is ongoing at the Kuala Lumpur High Court before judge Collin Lawrence Sequerah.

On June 23, the prosecution told the court that there were 20 more witnesses left before the prosecution wraps up its case.

Once the prosecution stage of the case concludes, the judge will listen to submission from both parties to decide whether there is a prima facie case against Najib.

If ordered to enter his defence, Najib has three options:

The Pekan MP can choose to maintain silence and not answer to the charges, give an unsworn statement from the dock without being cross-examined by the prosecution or testify under oath, allowing the prosecution to cross-examine him.

1MDB audit tampering

In this trial, Najib is charged with abuse of power as a public officer in his capacity as then prime minister and finance minister in altering the 1MDB audit report, which was to be tabled to the Public Accounts Committee in 2016. This was so that no action could be taken against him by parliament.

1MDB’s then CEO Arul Kanda Kandasamy is also charged with abetting Najib in the alleged tampering of the 1MDB audit report at a meeting with National Audit Department officers on February 24, 2016.

This trial is also ongoing at the Kuala Lumpur High Court before judge Mohamed Zaini Mazlan.

The final prosecution witness was supposed to take the stand on July 14, but was taken ill. The trial will resume on August 26.

International Petroleum Investment Co (IPIC) case

Najib and former Treasury secretary-general Mohd Irwan Serigar Abdullah are jointly facing six charges of criminal breach of trust (CBT) involving RM6.64 billion of government funds for payments to IPIC.

They were charged under section 409 of the penal code, read together with section 34.

IPIC, Abu Dhabi’s sovereign wealth fund, was a co-guarantor of two 1MDB bonds totalling US$3.5 billion.

In the IPIC case, Najib and Irwan had claimed trial on October 25, 2018 to six counts of misappropriating some RM6.64 billion in government funds.

The offences were allegedly committed between December 21, 2016 and December 18, 2017.

Part of the funds were slated for certain purposes including the management expenditure of the Kuala Lumpur International Airport, and subsidy and cash assistance reportedly under Budget 2017 allocation.

Previously, it had been reported that the monies were channelled to 1MDB instead, to repay its debts including US$1.2 billion to the Abu Dhabi sovereign wealth fund in April 2017.

In March this year, the High Court quashed Najib and Irwan’s bid to quash the CBT charges.

SRC International Sdn Bhd – RM27 million

There are three more additional charges in relation to SRC International which have not been heard.

This involves three additional counts of money laundering involving RM27 million.

On all the three charges, Najib was alleged to have been involved in money laundering by accepting RM27 million, RM10 million and RM10 million, which were proceeds from illegal activities, in his three AmPrivate Banking accounts.

The Pekan MP allegedly committed all the offences at AmIslamic Bank Bhd, Ambank Group Building, No. 55, Jalan Raja Chulan on July 8 2014 under Section 4 (1) (a) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001.

RM1.6 billion IRB appeal

On July 22, 2020, the High Court entered the summary judgment against Najib and required him to pay RM1.69 billion. The decision was upheld by the Court of Appeal on October 21 last year, but the court granted a stay of the summary judgment decision requiring him to pay the tax.

The challenge mounted by Najib relates to section 106(3) of the Income Tax Act 1967 (ITA) that the court shall not entertain any plea that the amount of tax sought to be recovered is excessive, incorrectly assessed, under appeal or incorrectly increased.

Section 106(3) is considered an ouster clause as it denies the court any jurisdiction to hear matters concerning income tax calculation, appeals or payment. – August 23, 2022.